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Social Determinants of Labor Market Status of Ethnic Minorities in Britain

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  • Martin Kahanec
  • Mariapia Mendola

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Abstract

The labor market behavior of ethnic communities in advanced societies and the social determinants of labor market outcomes of minority groups are important empirical issues with significant policy consequences. We use detailed micro-data on multiple-origin ethnic minorities in England and Wales to investigate the way different network-based social ties influence individual employment outcomes. We find that the core family structure and contacts with parents and children away (in Britain) increases the probability of self-employment. On the other hand, engagement in organizational social networks is more likely to channel people from ethnic minorities into paid employment. Finally, disaggregating different types of social networks along their compositional characteristics, we find that having ethnic friends is positively associated with the likelihood to be self-employed while integration in mixed or non-ethnic social networks facilitates paid employment among minority individuals. These findings hint at a positive role of social integration on employment opportunities of ethnic communities in host societies.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper125.pdf
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Bibliographic Info

Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 125.

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Length: 34 pages
Date of creation: Nov 2007
Date of revision: Nov 2007
Handle: RePEc:mib:wpaper:125

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Keywords: labor market; self-employment; ethnic minorities; social ties;

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References

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  1. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2004. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working papers 2004-07, University of Connecticut, Department of Economics, revised Oct 2005.
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  4. Constant, Amelie F. & Gataullina, Liliya & Zimmermann, Klaus F., 2009. "Ethnosizing immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 69(3), pages 274-287, March.
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  7. Topa, Giorgio, 2001. "Social Interactions, Local Spillovers and Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 68(2), pages 261-95, April.
  8. Battu, Harminder & Mwale, McDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," Working Paper Series 603, Research Institute of Industrial Economics.
  9. Harry J. Holzer, 1986. "Informal Job Search and Black Youth Unemployment," NBER Working Papers 1860, National Bureau of Economic Research, Inc.
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  14. Clark, Ken & Drinkwater, Stephen, 2006. "Changing Patterns of Ethnic Minority Self-Employment in Britain: Evidence from Census Microdata," IZA Discussion Papers 2495, Institute for the Study of Labor (IZA).
  15. Clark, Kenneth & Drinkwater, Stephen, 1998. "Ethnicity and Self-Employment in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(3), pages 383-407, August.
  16. Datcher, Linda, 1983. "The Impact of Informal Networks of Quit Behavior," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 491-95, August.
  17. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
  18. Datcher, Linda P, 1982. "Effects of Community and Family Background on Achievement," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 32-41, February.
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  21. Clark, Kenneth & Drinkwater, Stephen, 2000. "Pushed out or pulled in? Self-employment among ethnic minorities in England and Wales," Labour Economics, Elsevier, vol. 7(5), pages 603-628, September.
  22. Kenneth Clark & Stephen Drinkwater, 2002. "Enclaves, neighbourhood effects and employment outcomes: Ethnic minorities in England and Wales," Journal of Population Economics, Springer, vol. 15(1), pages 5-29.
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Citations

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Cited by:
  1. Kahanec, Martin & Zaiceva, Anzelika & Zimmermann, Klaus F., 2010. "Ethnic Minorities in the European Union: An Overview," IZA Discussion Papers 5397, Institute for the Study of Labor (IZA).
  2. Kahanec, Martin & Zaiceva, Anzelika, 2008. "Labor Market Outcomes of Immigrants and Non-Citizens in the EU: An East-West Comparison," IZA Discussion Papers 3420, Institute for the Study of Labor (IZA).
  3. Luciana Méndez Errico, 2013. "The Impacts of Social Networks on Immigrants’ Employment Prospects: The Spanish Case 1997-2007," Working Papers wpdea1301, Department of Applied Economics at Universitat Autonoma of Barcelona.
  4. Comola, Margherita & Mendola, Mariapia, 2014. "The Formation of Migrant Networks," IZA Discussion Papers 7981, Institute for the Study of Labor (IZA).

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